The insurance industry has been on a transformative journey, adapting to the evolving needs of the market and advancing technologies that drive business, commerce and everyday life.

However, according to the Department of Health and Human Services, 10,000 people turn 60-years-old every day. This segment of the population has likely met most of their insurance needs. But the preferences and expectations of younger consumers, specifically Millennials (born between 1981 and 1996) and Generation Z (born between 1997 and 2012) have been mere discussion points within parts of the industry until recent years.

This dynamic demographic duo possesses significant purchasing power and represents nearly 142 million Americans or about 42% of the current U.S. population, making them a prime target for insurance organizations looking to expand their business opportunities. To effectively engage with Millennials and Gen Z, organizations need to implement innovative tactics and best practices that resonate with these tech-savvy, value motivated and socially conscious generations to impress upon them the innate value of, and need for, insurance products.

Simplicity and Transparency

One of the easiest solutions to engage younger consumers – and one of the biggest barriers to insurance adoption – is overcoming the complexity that has been inherent in the industry’s positioning.

Millennials and Gen Z remember their parents agonizing over insurance – and not just the costs. The terminology, the volume of paper and, in some cases, the shock of finding out something they thought was covered was not, have all left younger consumers with the impression that insurance is both complex and unapproachable. These are the point-and-click generations of consumers. They don’t want to have to invest hours of reading and back and forth with an agent simply to purchase an insurance product. They want the process to be simple, straightforward and frictionless.

Removing the complexity, simplifying language and creating a clear and transparent guide to what is and is not covered is paramount. Doing so in a digital environment also demonstrates to these potential, emerging insurance consumers, that the industry understands them and is acting to meet them where they are, which is often online and on their mobile devices.

Embedded Insurance

Ride-sharing platforms like Uber and Lyft offer embedded insurance to protect drivers and passengers. Younger consumers appreciate this approach because it eliminates the need for separate insurance transactions and makes insurance more accessible and relevant. This goes beyond telematics to include digital recordings of each ride, thus enhancing rider safety.

By collaborating with various industries, such as travel, e-commerce or the gig economy, insurance organizations can create tailor-made insurance solutions that cater to Millennials’ and Gen Z’s specific needs and lifestyles. Put simply, they don’t want to have to think about insurance when purchasing goods or services, but they want to know it is there to protect them all the same at the point of purchase. This also reduces barriers to insurance services which have inhibited younger consumers’ early adoption of insurance products historically.

Personalized Insurance Products

Millennials and Gen Z appreciate tailored experiences and are willing to share data in exchange for an improved customer experience. This includes their experiences as insurance consumers to achieve relevant coverage and pricing.

Insurance organizations are better positioned today to utilize artificial intelligence and big data analytics to create customized insurance packages that meet individual needs. A prime example is the rise of on-demand or micro-insurance platforms like travel insurance for a weekend trip. Micro-insurance can also be employed to insure crops or livestock, along with a host of other specific needs. These tailor-made insurance policies help individuals and organizations prepare for specific risks while offering flexibility and customization options that are highly attractive to insureds of any age seeking short-term coverage for their unique circumstances.


In the auto insurance market, telematics has been a game-changer. The data collected by these devices offers opportunities to better manage spending. This applies to personal lines as well as commercial where young entrepreneurs with commercial auto needs are looking for ways to control costs and improve worker safety within the companies they manage and own.

Younger generations, particularly Gen Z, are keen on technology that can save them money. Telematics-based auto insurance appeals to their desire for transparency and fairness in pricing.

Enhancing Customer Experience

Technology and tailored insurance products will only go so far in shaping the views and adoption of insurance by younger consumers. The customer experience must be prioritized if these consumers are to be won over to the inherent value of insurance. Some of the ways the industry can move to improve the customer experience include:

Improving Transparency: Younger consumers value transparency. Insurance organizations should provide clear and concise information about coverage, pricing and policy terms while avoiding industry jargon that can be both confusing and a turn-off for savvy younger consumers. These consumers will not hesitate to shop around for both a better deal and a more inviting sales experience.

Educating Consumers: Creating informative and engaging content about insurance products, risks and financial planning is a winning strategy to engage young consumers. Building this content – in written form and video – helps bridge the gap in consumer education that has left many Millennials and Gen Z lacking sufficient knowledge about the broad use and benefit of insurance.

Streamlined Digital Platforms: Insurance organizations that have not yet invested in user-friendly, mobile-responsive websites and apps are significantly behind the times and likely out of the reach of Millennial and Gen Z consumers. These platforms not only allow for easy policy management, claims processing, and communication with customer support, but they are – by default – the assumed means of use among younger consumers. As has too often been said, there is an app for everything, and insurance should not be excluded from this thinking.

Employing Chatbots and Virtual Assistants: Implementing AI-powered chatbots and virtual assistants can provide quick answers to customer queries, streamline the buying process and enhance overall customer satisfaction.

Focus on Outcomes and Engagement

If Millennials and Gen Z truly are the future of insurance, organizations must shift their focus from selling products to delivering consumer outcomes. This means aligning insurance offerings with what matters most to these generations, such as financial security, convenience and social impact. For example, insurance organizations can design products that combine savings and protection elements, addressing these consumers’ financial concerns while providing peace of mind.

Furthermore, insurance organizations can tie insurance policies to social and environmental causes, demonstrating commitment to corporate social responsibility, which resonates with the inherent sensibilities and priorities of these generations. A June 2023 study by Deloitte found more than half of Millennials (54%) and Gen Zs (55%) say they research a company’s environmental impact and policies before accepting a job from those companies. No doubt, as consumers, they follow a similar approach. And businesses have taken notice. According to the annual Gartner CEO and Senior Business Executive Survey conducted in late 2021 and released in May 2022, CEOs ranked environmental sustainability at number eight among their top 10 strategic business priorities – the first time this priority ranked in the top 10 in the history of the survey. The insurance industry would be well served to focus on and amplify its environmental sustainability efforts.

Engaging Millennials and Gen Z requires the insurance industry to embrace innovation, leverage technology, and prioritize customer-centricity. By offering personalized, tech-driven solutions, embedded insurance partnerships, and enhanced customer experiences, insurance organizations can tap into the vast potential of these generations. Moreover, aligning insurance products with consumer outcomes while also better educating insurance consumers will not only boost engagement, but also will foster long-term trust and loyalty among today’s younger consumers who will be tomorrow’s business, industry and nonprofit leaders.

As the insurance landscape evolves, adapting to the preferences and sensibilities of Millennials and Gen Z is not just a strategic choice, but one of necessity for the continued, successful evolution of the industry.

WRITTEN BY Geoff Keast Keast is vice president of sales for INSTANDA, a global provider of no-code insurance platform technology.